For once, it came all as expected: The BoE cut interest rates yesterday by a further 50 basis points on its way to join the "Club Near Zero" (JPY, USD, CHF) and the ECB left rates unchanged. Accordingly the market reacted calmly, with volatility in GBP and EUR increasing, but resulting only in a sideways movement in EUR/USD, and in some strength in GBP/USD. Menawhile the economic data flow from North America and the British Isles is coming in better than expected. Hopes are building that these economies may have hit bottom. That is quite in contrast to the European continent, where the relevant data still points to an economic contraction worse than anticipated. Consequently the market expects the ECB to cut further in the near future, leaving not much of upside potential for the euro against the dollar and other currencies.
For today`s trading we do not expect much of a change in the see-saw market observed in many pairs and crossings. The US employment figures for January scheduled for release today could have some impact on the market, 14:30 CET - non farm payrolls and unemployment figure.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Tending weaker in Asian trading, the pair is in a recovery move in early European hours, currently priced at 1.2810. We see that move continue in today`s trading, but not exceeding the 1.2890 resistance point.
GBP / USD
The remarkable short term strength of Cable is about to end in today`s trading, moving between current price at 1.4690 and 1.4850 resistance.
Although we see some more upside potential into the 1.4750 area, we doubt that this level mark will be meaningfully broken today.
USD / CHF
The dollar is losing some ground in early European trading against the Swiss franc, shunning back from resistance level 1.1730, currently trading at 1.1710. We see more weakness to emerge in today`s trading, eventually leading to a test of support at 1.1670.
USD / JPY
After a short stop loss buying show, the dollar fell back again in late Asian trading,
right now recovering a little to the present 91.45 level. We expect the low volatility mood of this market to return in today`s trading hours, and see a trading range between 91.80 and 90.90.
For today`s trading we do not expect much of a change in the see-saw market observed in many pairs and crossings. The US employment figures for January scheduled for release today could have some impact on the market, 14:30 CET - non farm payrolls and unemployment figure.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Tending weaker in Asian trading, the pair is in a recovery move in early European hours, currently priced at 1.2810. We see that move continue in today`s trading, but not exceeding the 1.2890 resistance point.
GBP / USD
The remarkable short term strength of Cable is about to end in today`s trading, moving between current price at 1.4690 and 1.4850 resistance.
Although we see some more upside potential into the 1.4750 area, we doubt that this level mark will be meaningfully broken today.
USD / CHF
The dollar is losing some ground in early European trading against the Swiss franc, shunning back from resistance level 1.1730, currently trading at 1.1710. We see more weakness to emerge in today`s trading, eventually leading to a test of support at 1.1670.
USD / JPY
After a short stop loss buying show, the dollar fell back again in late Asian trading,
right now recovering a little to the present 91.45 level. We expect the low volatility mood of this market to return in today`s trading hours, and see a trading range between 91.80 and 90.90.
